Aroundtown Strengthens Debt Structure With GBP 400 Million Bond Issuance And Strategic EUR 870 Million Buyback Program

Aroundtown (AT1.DE) has executed a dual debt optimization strategy by launching a 400 million pounds senior unsecured bond coupled with a concurrent tender offer targeting 870 million euros of outstanding liabilities. The move reflects the Company’s focus on reshaping its financing profile to address near-term maturities and reduce debt servicing costs.

New Bond Series Extends Maturity Timeline

The newly issued Series 44 bond carries a 7-year maturity, maturing in December 2032. To manage currency exposure on the pound-denominated debt, Aroundtown implemented a cross-currency swap mechanism converting the obligations into Euro terms. Under this hedging arrangement, the bond carries a fixed coupon of 3.5% for the initial three-year period, transitioning to 1.15% plus the 6-month Euribor rate for the remaining tenor.

The GBP 400 million in euro-equivalent terms underscores the company’s multi-currency funding approach, allowing it to access diverse capital markets while maintaining standardized currency exposure across its broader debt portfolio.

Targeted Buyback Reduces Financing Burden

Alongside the new issuance, Aroundtown initiated a tender offer designed to repurchase bonds worth 870 million euros across three separate series. The targeted bonds are characterized by shorter maturity dates and comparatively elevated coupon payments, positioning their retirement as strategically beneficial to the company’s overall cost structure.

The tender offer commenced on December 4, 2025 and concluded on December 11, 2025. By retiring higher-coupon obligations, Aroundtown aims to lower weighted-average financing costs and extend the average maturity profile of its debt stack.

Strategic Implications For Debt Management

The combined initiatives represent a comprehensive liability management program aimed at smoothing the company’s debt repayment schedule and optimizing capital efficiency. The refinancing approach balances new long-dated funding with selective retirement of expensive near-term obligations, a common strategy among real estate companies managing cyclical refinancing pressures.